Exploitasi seeking Rp 2.7t for coal mines acquisition

Indonesia-listed coal miner PT Exploitasi Energi Indonesia said that the company was aiming to raise Rp 2.7 trillion (US$286.2 million) from rights shares offering to take over smaller affiliated firm engaged in energy and coal mining that could expand its coal outreach, The Jakarta Post reported.

Exploitasi Energi planned to acquire a 99.97 percent stake in a company with interests in coal mining called EBI, which is jointly owned by Exploitasi Energi?s president commissioner, Andri Cahyadi, and vice president director, Henri Setiadi.

"The development of those assets is expected to ensure the company?s growth in the short and medium terms, and give stable growth for cash flow to, among other things fund the company?s expansion in the energy business in line with the company?s growth plans;" Exploitasi Energi said in the published prospectus.

Exploitasi Energi has a 498.7 hectare mining concession located in Tanah Laut, South Kalimantan , with 18 million tons of coal reserves. The company began operations in 2004 and has mined a total of 120,000 tons of coal since then.

"[The acquisition] will increase the company?s revenue potential in the future given the interesting prospects in the coal and energy industries;" Exploitasi Energi wrote. (*)